Exxon Mobil Explores Supplying Data Centers With Cleaner Energy, Signaling Growth in Sustainable Tech Investments

Imagine trying to run a giant, busy amusement park all day without making a mess—pretty tough, right? That’s a lot like what big tech companies face when powering their huge data centers for artificial intelligence (AI): they need tons of energy, but also want to keep things clean for the planet.

What’s Happening: Exxon Mobil’s Big Move

Exxon Mobil is working closely with power companies and tech giants to help make the energy used by AI data centers cleaner. These data centers, run by companies like Alphabet, Amazon, Meta, and Microsoft, use a lot of electricity—often from natural gas, which can pollute the air.

Exxon’s CEO, Darren Woods, says they’re talking with these companies to use carbon capture technology. This means grabbing most of the carbon dioxide (CO2) that comes out of natural gas plants before it goes into the air. Exxon hopes to capture 90% of the CO2 from these power plants.

Why Investors Should Care

This news matters for investors because it shows a new way energy and tech companies might work together. It could affect:

• Energy stocks: Companies like Exxon Mobil could see more demand for their carbon capture solutions.
• Tech stocks: Big tech firms may spend more to ensure their data centers are cleaner, which could impact their costs and image.
• Green investing: Investors focused on clean energy may want to watch how successful these partnerships are.

The Bull Case: Why This Could Be Good

• Cleaner energy for AI: With more AI data centers popping up, finding cleaner ways to power them is key. Carbon capture could help keep emissions down while still using reliable natural gas.
• Tech’s green image: Big tech companies want to look good to customers and governments. Using carbon capture could help them meet climate goals.
• Growth for carbon capture: If this plan works, it could mean more business for companies making carbon capture technology.

The Bear Case: What Could Go Wrong

• Cost concerns: Carbon capture is expensive. If costs stay high, some companies might not want to use it.
• Not a perfect fix: Some experts say carbon capture isn’t enough and that we need to use less fossil fuel overall. Relying too much on this tech could slow down real change.
• Competition from renewables: Data centers already use lots of renewable energy and are starting to look at nuclear power. Carbon capture might not win out if these options get cheaper or more reliable.

Extra Insight: The Bigger Picture

Global data centers already use about 1% of the world’s electricity, and their energy use could triple by 2030 as AI grows (International Energy Agency). This means finding new ways to power them without hurting the environment is more important than ever.

Some companies, like Meta, are already making deals to power data centers with natural gas in places like Louisiana. But they’re also investing in renewables and nuclear to keep things balanced.

Investor Takeaway

• Watch carbon capture: If Exxon and its partners pull this off, it could boost stocks tied to carbon capture technology.
• Track tech’s energy choices: See how big tech companies balance renewables, nuclear, and carbon capture in their data centers.
• Consider sector impacts: Energy, industrial, and tech sectors could all see changes as new solutions roll out.
• Follow the costs: Keep an eye on whether carbon capture becomes affordable enough for wide use.
• Think long-term: The race to power AI cleanly could create new winners—and losers—over the next decade.

For the full original report, see CNBC